Foreign companies aspiring to enter the Chinese market and established businesses sharpening their brand in the Middle Kingdom may seek the advice of established Chinese Business Consultants.
These consulting firms have in-depth knowledge of the Chinese market, its culture and can offer one-stop-solutions for everything around business set-up and digital marketing in the Middle Kingdom.
In this article by Tenba Group, your preferred Chinese digital marketing agency, we explore the Chinese business landscape, the chances for the future, and the opportunities for your business in the Middle Kingdom.
The Chinese Business Landscape
Companies in China are rapidly evolving and acquiring new competencies. In fact, Chinese marketers have mastered the art of uniquely addressing China's mobile-first consumer with tailormade campaigns.
With the growing number of investments around the world to secure political and economical power and influence, China as the largest economy in terms of GDP (PPP) expands its leading position.
Likewise, China’s Belt and Road Initiative to connect the East and West, as well as programs like “Made in China 2025” boost the economy in the Middle Kingdom.
The Status Quo is Changing
However, recent political, economical and socio-cultural events are changing the way we used to live, work, and do business.
Business Learnings from Covid-19
For instance, the current Coronavirus pandemic accounts for hundreds of thousands of dead and widespread economic losses. In particular, industrial production and manufacturing are facing a severe crisis with losses of up to 94% (motor vehicles).
At the same time, the pharma and medical supply industries were identified as one of very few “winners” of this crisis. Traders for masks, ventilators, and personal protective equipment (PPE) that were able to connect reliable manufacturers with ready-to-buy customers for short-notice bulk purchases, could save lives by doing their job and expand their business at the same time.
This underlines a trend, which will only gain relevance in the future: quickly adapting to new demands and situations, having a reliable network of trustworthy high-quality suppliers, and the ability to fulfill the requirements of international customers.
In the past, the Middle Kingdom was often referred to as the “world factory”. In fact, in the 21st century, China has become the largest exporting nation in the world. As such, the Middle Kingdom’s goal is to move away from being the “world’s factory” for cheap, low-quality goods like textiles and electronics.
Instead, in the future, China aims at producing high-value goods and services, for example, for the aerospace and semiconductor sectors. However, sourcing products from China is not only attractive for international B2B companies.
Even SMEs and individuals like Amazon sellers can benefit from China’s new production uprise. There are a variety of options for getting goods from China - dropshipping, reselling, white labeling, and creating your own product.
Click here to find out more about how you can source existing products or manufacture your own goods in the Middle Kingdom.
Hong Kong Protests for Autonomy
Likewise, the 2019/2020 protests in Hong Kong for democratic reform and independence from China hold opportunities for businesses.
To date, Hong Kong is a special administrative region controlled by China under the “one country, two systems” arrangement. However, to gain more autonomy, democracy, and rights, Hong Kong’s citizens are now raising their voices.
At the same time, more and more residents opt to leave their homes temporarily or seek citizenship of other countries to permanently live a more free and democratic life.
As such, immigration agencies are the “winners” of these protests. They offer so-called golden visas for residency by investment in other countries. Other popular programs are citizenship by investment, often through real estate.
Destinations like Cyprus, Portugal, and Spain are particularly attractive due to their geographic location and EU-membership.
In Europe, Cyprus is particularly attractive due to its affordable investment program. The Cyprus Permanent Residency Permit (PRP) can be obtained with property investment of at least 300,000 Euros. The Citizenship by Investment Program requires a total investment of at least 2.15 million Euros.
A specialist like My Kypros Home is a reliable source on the island to facilitate the process of finding real estate, filing the application, and more.
China as Ecommerce Leader
To begin with, China’s gigantic market size and innovation potential make it one of the most attractive ecommerce markets worldwide.
With a volume of almost 2 trillion USD in 2019 (plus 27% compared to 2018), China is the largest ecommerce market in the world. Ecommerce accounts for around a quarter of the country’s total retail sales volume.
And yet, China’s digital market is not fully saturated yet. Especially foreign products have a special appeal to Chinese consumers. In general, a higher-quality, exclusiveness, and luxury as well as a higher safety standard (through stricter testing) are associated with these imported goods.
To specify, products for babies (like formula), organic food and beverages, as well as luxury fashion, jewelry, and accessories are in high demand.
So, cross-border ecommerce (CBEC) is the preferred way for foreign brands to sell their products in the Chinese market.
That’s because CBEC has a specific regulation: international companies can sell their products to Chinese customers at favorable duty rates and without a license to operate a business in the country. The most popular CBEC marketplaces are Kaola, Tmall Global, JD Worldwide, VipShop, RED, and Pinduoduo.
Besides, niche items like cruelty-free products, for which the demand is skyrocketing, are not yet available in the Middle Kingdom. In fact, China is one of the last countries with a law to demand that cosmetic products sold in the Middle King are tested on animals.
This policy is only slowly being adapted. Until the cruelty-free market is fully open, cross-border ecommerce is the only way to sell vegan cosmetics and beauty brands in mainland China.
To sum it up, China has the largest population in the world, a rising middle class, and an 8.6% increase in consumption in 2019. Therefore, entering the Chinese market with your business is worthwhile considering.
Chances for the Future
As history has shown, after every recession, recovery will follow. Often, with greater economic growth. In particular, industries like ecommerce, tourism, education, real estate, and trade will benefit from China’s new uprise.
This is especially interesting for Western business owners, aspiring to tap into the world’s most booming economy.
Ecommerce
Businesses with a physical presence in China can sell their products on Chinese ecommerce platforms directly. The largest platforms are Tmall China, JD.com, Kaola, and Xiao Hong Shu (RED).
Alternatively, for businesses without a physical presence, and for specialty products - as stated above - cross-border ecommerce platforms are a great way to reach Chinese consumers.
Working with Daigou and influencers is a great way to reach these customers, who long for authenticity and relationships.
Tourism
Chinese nationals are spending more on outbound travel than any other country. For example, in 2019 the total consumption volume of Chinese travelers abroad exceeded 127 billion USD (plus 17% compared to 2018).
As a result, targeting these travelers with tailor-made products and services is an attractive niche. Advertising on WeChat and offering digital payment solutions (AliPay, WeChat Pay) is key to attract Chinese vacationers.
Education
Foreign universities that attract international students can benefit from China’s need for high-quality education and the reputation of attending an international university.
In fact, more than 660,000 Chinese study abroad, a number which is growing by around 8%.
Real Estate
As residents of Hong Kong and China seek foreign citizenship as an option into more democratic and free nations, immigration programs through real estate become more and more popular.
In Europe, Cyprus attracts thousands of investors every year with its attractive permanent residency and citizenship by investment programs.
Trading Companies
International B2B and B2C businesses can benefit from China’s improving production capabilities. Sourcing products from China for Chinese and international markets is becoming more and more attractive.
To sum it up, China holds great business potential for many international companies. So, you may wonder, how consultants for Chinese business can help your business to develop and grow. Let’s explore this now!
Chinese Business Consultants
Working with Chinese business consultants takes stress and burden off your shoulders. A professional China online marketing company like Tenba Group provides you with a one-stop solution to conquer the Chinese market.
While many consultant firms and agencies provide strategic advice on the Chinese market, it is often either marketing or legal advice or another specialized area.
Tenba Group offers you the whole package - everything you need for entering the Chinese market from one source.
1. Business Set-Up
From the type of business you need for the Chinese market to the Chinese website of your company including translations - we’ve got you covered. We also know how to surpass the Great Firewall of China if your business is located outside of mainland China.
For example, opening a Representative Office (Rep Office) in China is one of the most popular options for foreign businesses entering the Chinese market. It’s a simple and fast option for overseas businesses to set up an operation in China. It allows a foreign company to engage in market research or business operations in China. However, they are not allowed to make a profit.
Alternatively, a wholly foreign-owned enterprise (WFOE) offers more options. It is a common investment vehicle for businesses in mainland China. Foreign parties (individuals or businesses) can incorporate a foreign-owned LLC. WFOEs are unique in the sense that the involvement of a mainland Chinese investor is not required.
2. HR: Recruiting & Trainings
An expert for the Chinese market with an established network can help you to find qualified professionals in China according to your needs and budget.
An agency like Tenba Group can help you with this. Additionally, we provide trainings for local and international employees on the specifics of the Chinese business environment, culture, and language.
3. China Ecommerce Market Expertise
Consultants in China like Tenba Group know exactly which platforms are suitable for your niche - from cross-border ecommerce platforms like Tmall Global to Chinese social media apps like WeChat and TikTok/Douyin.
We also connect you with Daigou sellers to promote your imported luxury goods in China. If you are looking to source products from China, we connect you with reliable high-quality suppliers.
4. Digital Marketing Strategy
China SEO and PPC (pay-per-click ads) on Baidu, WeChat marketing, influencer marketing, and Chinese PR are powerful tools to promote your business in the Middle Kingdom. If you don’t know where to start, we at Tenba Group are here for you!
5. Chinese Culture & Language
Tenba Group as an experienced China consulting group can assist you with in-depth knowledge of China and its culture. Learn about the many specialties related to doing business in the Middle Kingdom, and find out how to reach Chinese consumers.
From relationship building (guanxi) to respect and seniority, our local consultants also speak Mandarin to help you with your correspondence. In fact, according to estimates, less than 1% of mainland Chinese have conversational English skills.
6. Legal Services & Fulfillment
From trademark registration to shipping solutions, and payment integration - we are excited to do this for you.
7. Tailormade Solutions
You didn’t find what you are looking for? Contact us to get you started in the Chinese market.
International businesses, from start-ups to established enterprises, can benefit from marketing in China. Boost your business with Tenba Group today!
The Takeaway
China’s business landscape is changing. It is a very competitive market, rapidly growing and spreading out. From the Coronavirus-pandemic and the Hong Kong protests to an evolving ecommerce market - the way we live, work, and do business is changing.
Professional Chinese business consultants can help you with one-stop-solutions for every step along the way. From market entry in the Middle Kingdom to expertise on the Chinese ecommerce landscape, and cultural and language specialties.
Our clients benefit from our industry expertise and can trust our results-oriented solutions and successful business services. We at Tenba Group are an experienced business consulting firm, dedicated to advance your business. Send us a message and tell us about your project and vision.
Do you want to know more about advertising in China, including PR consultancy and working with influencers? Take a look at our blog on China digital marketing.
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